348 tal-2017

L.N. 348 of 2017

VALUE ADDED TAX ACT

(CAP. 406)

Value Added Tax Act (Amendment of Fourteenth Schedule)

Regulations, 2017

BY VIRTUE of the powers conferred by articles 57 and 75 of

the Value Added Tax Act, the Minister for Finance has made the

following regulations:-

(1) The title of these regulations is the Value Added Tax

Act (Amendment of Fourteenth Schedule) Regulations, 2017, and

these regulations shall be read and construed as one with the

Fourteenth Schedule to the Value Added Tax Act, which Fourteenth

Schedule is hereinafter in these regulations referred to as "the

Schedule".

(2) These regulations implement the provisions of Council

Directive (EU) 2016/1065 of the 27th June 2016 amending Council

Directive 2006/112/EC as regards the treatment of vouchers.

(3) These regulations shall come into force on the 1st January

2019.

Immediately after Part Eight of the Schedule there shall be

added the following new Part

"Part Nine

Vouchers

Interpretation

1. In this part

"voucher" means an instrument where there is an

obligation to accept it as consideration or part consideration for

a supply of goods or services and where the goods or services to

be supplied or the identities of their potential suppliers are

either indicated on the instrument itself or in related

documentation, including the terms and conditions of use of

such instrument;

"single-purpose voucher" means a voucher where the place

of supply of the goods or services to which the voucher relates,

and the VAT due on those goods or services, are known at the

time of issue of the voucher;

"multi-purpose voucher" means a voucher, other than a

single-purpose voucher.

Single-purpose voucher

2. (1) Each transfer of a single-purpose voucher made

by a taxable person acting in his own name shall be regarded as

a supply of the goods or services to which the voucher relates.

The actual handing over of the goods or the actual provision of

the services in return for a single-purpose voucher accepted as

consideration or part consideration by the supplier shall not be

regarded as an independent transaction.

(2) Where a transfer of a single-purpose voucher is made

by a taxable person acting in the name of another taxable

person, that transfer shall be regarded as a supply of the goods

or services to which the voucher relates made by the other

taxable person in whose name the taxable person is acting.

(3) Where the supplier of goods or services is not the

taxable person who, acting in his own name, issued the single-

purpose voucher, that supplier shall however be deemed to have

made the supply of the goods or services related to that voucher

to that taxable person.

Multi-purpose voucher

(1) The actual handing over of the goods or the

actual provision of the services in return for a multi-purpose

voucher accepted as consideration or part consideration by the

supplier shall be subject to VAT pursuant to article 4 of the

Value Added Tax Act, whereas each preceding transfer of that

multi-purpose voucher shall not be subject to VAT.

(2) Where a transfer of a multi-purpose voucher is made

by a taxable person other than the taxable person carrying out

the transaction subject to VAT pursuant to paragraph (1) of this

item, any supply of services that can be identified, such as

distribution or promotion services, shall be subject to VAT.

Taxable value

Without prejudice to item 1 of the Seventh Schedule

to the Value Added Tax Act, the taxable amount of the supply of

goods or services provided in respect of a multi-purpose

voucher shall be equal to the consideration paid for the voucher

or, in the absence of information on that consideration, the

monetary value indicated on the multi-purpose voucher itself or

in the related documentation, less the amount of VAT relating to

the goods or services supplied.".

€0.27